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Security & Risk

Custodial model​

Demeter is custodial: it stores your wallet's private key so it can sign the actions you request. This is what makes a chat‑only experience possible — no browser extension, no manual signing.

How keys are handled:

  • Private keys are encrypted at rest (Fernet symmetric encryption). The master encryption key lives only in the server environment, never in the database.
  • Plaintext keys exist only for the instant a transaction is signed, and are never logged.
  • You can export your key at any time and move to a non‑custodial wallet.

Custodial convenience comes with custodial trust: you rely on the operator to safeguard keys. Only keep what you're comfortable with, and export to self‑custody for larger amounts.

Your responsibilities​

  • Guard your Telegram account. Whoever controls your Telegram can control the bot actions for your wallet. Enable Telegram's 2‑step verification.
  • Back up your key. Export and store it securely so you're never dependent on a single system.
  • Verify addresses. Double‑check token addresses before providing liquidity; scam tokens are common.

Financial risks​

Providing liquidity is not risk‑free:

  • Impermanent loss — if the price of the pair moves, the value of a liquidity position can be worth less than simply holding the tokens.
  • Out‑of‑range positions — a concentrated position earns nothing while price is outside your chosen range.
  • Smart‑contract risk — DEX contracts can have bugs or be exploited.
  • Market risk — tokens can lose value quickly.

Start small on any new chain or pool. Never deposit more than you can afford to lose.

Failed transactions​

On‑chain transactions can fail (congestion, slippage, gas). A failed removal or claim does not burn your funds — principal and fees remain in the position on‑chain and can be collected on retry. If a balance looks missing after an error, it's almost certainly still in the position, recoverable.

Not financial advice

Demeter is software that helps you interact with DeFi protocols. Nothing here is financial, investment, legal, or tax advice. You are solely responsible for your decisions and funds.